Macroeconomics: Principles, Problems, & Policies 20th Edition

by
McConnell, Campbell; Brue, Stanley; Flynn, Sean

Chapter 1 - Limits, Alternatives and Choices - Review Questions: 6

Answer

a) PPF shifts outwards to the right
b) PPF shifts outwards to the right
c) PPF will shift to the right for the good that is dependent on copper
d) PPF shifts inwards to the left

Work Step by Step

Whenever production will increase, the PPF shifts to the right. By contrast, if production is damaged, the PPF shifts to the left. A shift to the right indicates that more goods and services can be attained, and vice versa.